 | Issue: | Global-ICT 2007 |
| Article no.: | 5 | |
| Topic: | Telecommunications – Europe’s regulatory challenge | |
| Author: | Dániel Pataki | |
| Title: | President | |
| Organisation: | National Communications Authority, Hungary, NCAH | |
| PDF size: | 192KB |
About author
Dániel Pataki is the President of Hungary’s National Communications Authority (NCAH). Mr Pataki is also the Vice President of the European Regulators Group/Independent Regulators Group (ERG/IRG) and will chair these organisations in 2008. Previously, as Deputy Secretary of State in charge of communications at the Ministry of Informatics and Communications, Mr Pataki was responsible for the creation of Hungary’s Electronic Communications Act and its Postal Services Act. Prior to joining the Government, Mr Pataki served as the Strategic Director of Vivendi Telecom Hungary, as Manager responsible for the communications practice at Andersen Management Consulting Division, Budapest, and as a business market manager at Vivendi Telecom, Hungary’s Business Development Directorate. He started his career in Paris at Totalgaz’s International Directorate. Mr Pataki was awarded the Order of Merit (Knight’s Cross) of the Republic of Hungary in 2005 for his work promoting the development of the information and communications technology sector. Mr Pataki graduated from the Budapest University of Economic Sciences specialising in international relations and public services and subsequently completed a postgraduate management programme in Paris.
Article abstract
In recent years, telecommunications costs in the European Union have fallen considerably; they were one-third less in 2006 than the previous year. TIME, the fusion of telecommunications, information, media and entertainment, is now a key economic sector in Europe and serves to foster education, healthcare and the maturity of Europe’s digital society in general. The growth of the sector, indeed Europe’s economic growth, will depend upon the coordination between the national regulatory authorities in the EU and the TIME sector.
Full Article
From a global perspective, the liberalisation of electronic communications services in the EU has so far been a success story. Consumers have spent approximately one-third less on communications services in 2006 than one year earlier, and now have access to a considerably wider range of services. Recent developments, including decreasing roaming prices, have continued to reduce consumer expenditures. The intensification of globalisation has highlighted the importance Information and Communication Technologies, ICT, has gained by more vigorous attention. Awareness also should be focused on a wider range of services in order to keep pace with other parts of the globe that may be bypassing us. Today’s technology has caused the fusion of the telecommunications, information, media and entertainment, TIME, industries into a new, interdependent sector. TIME is now one of Europe’s key economic sectors with respect to growth dynamics and macroeconomic importance. The TIME sector also serves to foster growth in such areas as education, healthcare and communication systems and, generally speaking, spurs the maturity of Europe’s newborn digital society. In terms of services, it seems that as consumers tend to focus increasingly upon mobile data services and IP-based solutions, such as IP media the market for mobile voice services will stagnate and fixed-line solutions will continue to go downhill. Technology in network industries is drifting from vertically separated appliances dedicated to single services towards many flavours of converged, multiple services, available on a variety of converged appliances. The individual applications – telephony, video or data and traditional business models- are undergoing a transformation from the traditional separate applications into evolving systems of integrated services. These developing next-generation applications are gaining considerable attention from both investors and customers. The investors – mostly network operators – are looking for assurance that their investments will meet future regulatory requirements. Consumers, on the other hand, are more interested in having access to the greatest possible number of services, from a single service provider, using a single piece of equipment. Consumers are interested in easy access to services – be it from a network operator, broadcaster or an alternative service provider. The expectations of both investors and consumers have to be managed in parallel with one another. The anticipated boost in the wireless economy is another emerging issue for the regulators. Technological developments already – or soon will – make it possible to better use some of the spectrum, which, although occupied at the moment, could be made available by resolving interference management questions. Better coordination and management of spectrum allocation – and the secondary trading possibilities attached to it – could greatly improve European spectrum utilisation. Given the differences in spectrum management as practised in each country in Europe, this will be a difficult task. Regulatory measures will play an important role addressing the challenges, but will not be sufficient alone. The expansion of consumer welfare, the growth of the TIME sector, and raising the EU’s competitiveness in global markets need to be pursued simultaneously by all the decision-makers involved. In this regard, the role of fiscal policy, competition authorities, and consumer associations becomes more significant. The aim of today’s regulatory work is to move towards functioning, competitive markets and further enhanced cross-border network competition. More specifically, as the next Chair of the European Regulators Group (ERG), I believe that the European regulatory stakeholders should focus on creating a workable regulatory environment that fosters the development of the network technologies and architectures that permit reasonably priced availability of broadband access to all European users. This should include access for those in less developed regions, peripheral, remote and rural areas. Indeed, the consolidated European regulatory approach to investment, to expand access to services, has been the subject of project financing at both the European level and regulatory debate. The EU’s i2010 strategy aims to create unified ‘European Information Space’, and foster a competitive European market for “information society and media services, to strengthen innovation and investment in ICT research, and to support inclusion, better public services and quality of life through the use of ICT”. A variety of regulatory initiatives, research programme funding, pilot projects, promotional activities and partnerships with stakeholders are in progress. The importance of this has become more evident in recent times. Now that we are reviewing the existing Electronic Communications Framework, it is time for us to deliver solid achievements in this regard. In order to place European citizens – all 500 million of them – on a higher point on the ladder, regulatory thinking must be targeted to help achieve this plan. As the most evident cornerstone of the plan, broadband allows households to access e-government, e-health and e-learning services, significantly improving their quality of life. Broadband is also essential to attract business to remote areas and boost the economy of such regions and contribute to the overall performance of the European economy. This, however, requires intelligent regulation in a well-directed, well-adjusted, regulatory environment. In this regard, there is space for a more unified regulatory approach by the Member states. The segmentation of regulatory systems, within the borders of the European Union, results in noticeable differences that must be overcome between the regulatory environments in each country. This is especially important when we are dealing with a multi-sector, multi-technology based regulatory approach within an increasingly competitive landscape. As president of a national regulatory authority and as Chair of the ERG, in 2008 I will focus our work on fine-tuning the regulatory framework, which so much depends on, used by the NRAs (national regulatory authorities). This will be accomplished by answering proposals and requests of the European Commission, and by own initiatives within the current or the developing rules of play. A more clearly emphasised presence on the European stage, and well-articulated opinions on important compromises within the ERG, are important to help investors and market players quickly achieve functioning competitive markets. I will also make sure that the multinational sector decision-makers are listened to and acknowledged. The efforts of the national regulators need to take advantage of the EU’s existing decision-making bodies and the support of market players to achieve their common goals. National regulators need to work closely with the European Commission, and vice versa, to promote the development of a stable, workable, single European electronic communications market. In this regard, I will do my best to work even closer with the Commission and other European institutions at the highest level, listen carefully to stakeholders, take into account their suggestions and ideas, and keep in mind the objectives of consumer benefit and stabilised market conditions for innovation.
